Transformation Pathways Initiative (TPI)

Industry and agrifood systems in emerging markets and developing economies are fast-growing sources of emissions, and agrifood chains also face drought, floods, heat stress and water scarcity. Limited long-term finance, high perceived risk, immature project pipelines and weak technical capacity hold back the shift to low-emission production.

The Transformation Pathways Initiative will operate in 10 countries across Latin America, Africa, Asia and Eastern Europe. A private debt fund managed by Finance in Motion will lend to companies and projects directly, and through local financial institutions that on-lend to small and medium-sized enterprises, for industrial decarbonisation and climate-resilient agriculture. A technical assistance facility, executed in part by the United Nations Industrial Development Organization, will build borrowers' capacity and develop local markets.

GCF junior equity is designed to bring in senior capital from institutional investors such as pension funds and insurers, and an investment-grade pre-rating supports their participation. Finance in Motion is the applicant under GCF's project-specific assessment approach. The initiative aims to show that decarbonisation in developing countries is investable, supporting GCF priorities on national and regional financial institutions.